Mattel, the maker of Barbie dolls and Hot Wheels cars, named Christopher Sinclair as its permanent CEO.
Sinclair has been interim CEO since January, when Bryan Stockton resigned from the top job as the company reported disappointing fourth-quarter results.
During the important holiday shopping season, Barbie sales fell 12 percent from a year ago, American Girl sales fell 4 percent and Fisher-Price sales fell 11 percent.
Sinclair, 64, has been on Mattel Inc.'s board for about 19 years and was a former executive at PepsiCo Inc.
Shares of the El Segundo, California toy maker fell 55 cents, or 2.4 percent, to $22.53 in afternoon trading Thursday.